Maricela Barajas, 41, and Juliana Menefee, 50, were arrested at their homes in Diamond Bar, Calif., and the third suspect, Eva Perez, 51, was already in jail on other charges.

The trio could face up to 20 years in prison if convicted of grand theft and security fraud charges, the Los Angeles Times reports.

Investigators say the moms claimed to have the exclusive right to sell AltaDena Dairy products at Disneyland and Disney Hotels and to small retailers and needed investors to build the business, KTLA reports.

They allegedly offered a return of up to 100%, winning over 40 investors through contacts at Neil A. Armstrong Elementary School PTA.

Police charge that the trio took in about $14 million, returned $10 million to investors to keep the scheme churning and kept about $4 million.

Authorities say $2.5 million apparently was spent on lavish vacation, new cars and at California and Nevada casinos, KTLA reports.

To report corrections and clarifications, contact Standards Editor Brent Jones. For publication consideration in the newspaper, send comments to letters@usatoday.com. Include name, phone number, city and state for verification. To view our corrections, go to corrections.usatoday.com.

About Doug Stanglin

Doug is an unrepentant news junkie who loves breaking news and has been known to watch C-SPAN even on vacation. He has covered a wide range of domestic and international news stories, from prison riots in Oklahoma to the Moscow coup against Mikhail Gorbachev. Doug previously served as foreign editor at USA TODAY. More about Doug

About Michael Winter

Michael Winter has been a daily contributor to On Deadline since its debut in January 2006. His journalism career began in the prehistoric Ink Era, and he was an early adapter at the dawn of the Digital Age. His varied experience includes editing at the San Jose Mercury News and The Philadelphia Inquirer.